Portland, OR · Member since 2013 · 15 posts · 1 vote
Hello. My 3 siblings and I inherited my mom's house after she passed away in 2008. I have it as a rental and receiving $1,500 in monthly rental payments. After the property management company takes their 8% fee ($120) we get $1,380 to cover the $1,377 mortgage. The house is in a trust with all the siblings names on it.
I am trying to refinance and get it out from the original loan at 5.35% interest. The goal is to lower our mortgage payment to gain a better cash flow. Right now, we have no cash flow.
1. Anyone know what financial institutions will help refinance a house under a trust?
2. What ideas do you all have to increase the cash flow of this house?
Location: Portland, Oregon.
So grateful to have this site! Thank you everyone!
Los Angeles, CA · Member since 2013 · 169 posts · 27 votes
12y
@Cindy Margheim Cindy, the area you described would lead me to believe current market value on the property is 250-300k. In that neighborhood you should be receiving higher rents, but probably not enough to be considered decent cash flow if it is your only property. What is your goal for the home?
Investor · Thermopolis, WY · Member since 2012 · 4k+ posts · 4k+ votes
12y
@Cindy Margheim you have not given us enough information to help you. What you need is to evaluate the investment. What is the current value of the house? Does it need updating to get a decent price? What is the fair market value for comparable rents like this house? How much is still owed on the house and how long is left on the mortgage?
You probably do not have large amounts set aside to cover replacing a roof or the furnace or AC. Are the costs of insurance and taxes being paid by the trust resulting your losing money every month? There are a lot of facts to consider. Not all nice houses make nice rentals because of poor cash flow, some do go up in value rapidly, some do not. Some houses make great rentals. Without more information we cannot help you judge what category your house falls under.
Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
12y
Seems like the property manager is making all the money in this one. But your real trouble lies ahead of you as landlords: How do you pay to replace a roof or heating system? How does the mortgage get paid when there is no tenant paying rent?
Portland, OR · Member since 2013 · 15 posts · 1 vote
12y
Great feedback! After our mom passed, we were just wanting to hold it for a while because there was hardly any equity on the house. It doesn't need any major repairs. Fresh paint job, carpets cleaned and minor stuff to get it ready for market. If we can sell it at the price range Corey has mentioned, we would definitely have some equity to gain. I'll meet with my broker and go from here.
Flipper/Rehabber · Lake Oswego, OR · Member since 2013 · 29 posts · 9 votes
12y
@Cindy Margheim my company manages other properties in that area and my initial thought is that there may be room for a slight rent increase in addition to negotiating a slightly lower management rate. Also, your cash flow might not meet the standards of a lot of the investors on this site, but in your situation it looks like you have a tenant that is paying down the mortgage while you your siblings are gaining equity. If you are ever interested in talking about your property management options, feel free to message me or give me a call; number is on our web site.